The Spanish government has raised its economic growth forecasts for 2025 to 2.7% from 2.6%, confirming that the Spanish economy will continue to outperform the economies of the Eurozone in the coming period. It also predicted that the GDP will show a growth rate of 0.7% in the third quarter compared to the previous quarter, reflecting continued strength in economic performance.
Spanish Economy Minister Carlos Cuervo stated at a press conference that Spain will remain the fastest-growing economy among advanced economies, with positive forecasts extending until 2028. He explained that the ongoing economic momentum enhances confidence in the country’s ability to maintain its growth trajectory despite global challenges.
The Spanish economy has shown remarkable resilience following the COVID-19 pandemic, managing to surpass the slow growth rate seen in the Eurozone. Estimates from the European Central Bank indicate that the Eurozone economy will grow by only 1.2% this year, highlighting the significant advantage of Spanish performance.
During the second quarter of this year, data for Spanish GDP exceeded expectations, as the economy recorded a growth of 2.8% year-on-year. This increase was driven by strong growth in investment and consumer spending, providing an additional boost that reinforced the recovery pace.
Despite these optimistic forecasts, the government has not yet been able to present a new budget for the coming year, amid legislative difficulties within a divided parliament, which could pose a challenge to sustainable growth if the political standstill continues.
